Freeman steps down as Predators chairman

Citing the Metro Sports Authority’s probing of his personal finances, Nashville Predators lead owner David Freeman has stepped down as chairman of the NHL hockey team, according to a letter sent Friday by Freeman’s attorney.

Thomas Cigarran, chairman of Nashville-based Healthways Inc., has been appointed chairman of the club and will lead discussions with the sports authority, according to the letter sent by J. Allen Roberts of Wyatt, Tarrant & Combs to Larry Thrailkill, a private attorney who works with Metro government on matters involving the Predators.

The investment group that owns the Predators leases its downtown arena — recently renamed Bridgestone Arena — from the sports authority. Some authority members believe the team may be in default due to a 2007 federal tax lien against Freeman. At a Feb. 12 meeting, the authority unanimously approved setting a March 5 deadline for Freeman to settle the lien and provide a new certification of his net worth — and for the team to guarantee it will not leave Nashville this year or next.

"The reality is the ownership group always had enough resources to make sure the city's investment in this team was secure," Cigarran said late Monday. "The problem of one owner doesn't change that."

Cigarran said the ownership group will respond to the sports authority by the March 5 deadline. He would not say whether the team will comply with any of the specific requests, but did reiterate the group's commitment to Nashville.

"We wouldn't be doing what we're doing if we'd had any interest in moving the team," Cigarran said.

Sports Authority Chairman Steve North and Rusty Lawrence, chairman of the authority's finance committee, said that the change in leadership does not address the authority's concerns.

"Unless the percentage of ownership has changed, I don't see how that would make any difference," North said.

Cigarran said the team's six owners own exactly the same share of the team as they did before, but he said those percentages may change as the team seeks additional investment.

In his letter, Roberts said the matter “seems to be driven as much by politics and media relations as by legal issues.” Roberts’ letter argues that the lien does not put Freeman in breach of a guaranty executed in August 2008 because the tax lien did not exist at that time. A previous letter from Freeman’s accountant stated that Freeman is disputing the amount of taxes the Internal Revenue Service claims he owes and has deposited a substantial amount of money with the IRS while he awaits a ruling.

Another letter submitted to the sports authority at its Feb. 12 meeting did not certify Freeman’s exact net worth, but stated it is greater than $29.8 million, which is twice the amount required by the lease.

A source familiar with Freeman’s sale of Commodore Medical Services, which he sold in May of 2007 to medical waste management firm Stericycle Inc. for an undisclosed sum, puts Freeman’s net worth in excess of $50 million.

Roberts letter states that Freeman has committed almost $40 million of his net worth to the team and provided $94 million in personal guarantees.

“Any suggestion that Mr. Freeman (or his partners) should now be penalized for his investment or for his willingness to guarantee the success of the Nashville Predators seems, at best, unappreciative,” Roberts wrote.

In a press release issued by the Predators this afternoon, Cigarran said the Predators would not be in Nashville today if not for Freeman’s efforts to pull together the ownerhsip team and purchase the team in 2007. He also said the team is receiving increasing support from fans and the local business community, citing Nashville-based Bridgestone Americas Inc.’s decision to purchase the naming rights for the downtown arena.

Pistons deal?

A media report Friday mentioned Freeman as a member of an investment group possibly targeting the Detroit Pistons NBA franchise.

But Andy Appleby, chairman and CEO of General Sports and Entertainment LLC and head of the investment group, said the report was overblown and, in any case, doesn’t involve Freeman.

Freeman also denied any involvement in the deal.

"I'm not engaged in the Pistons deal," he wrote via e-mail.

Appleby also said that while he may be interested in an opportunity to purchase a U.S. team in the next 12 to 24 months, no specific teams have been identified.